Question

A college admission office has modeled a path of a student through a college career. Estimated percentages: Freshman: 10% stay freshman and 15% quit; Sophomores: 8% stay Sophomores and 10% quit; Juniors: 15% stay Juniors and 5% quit; Seniors: 10% stay Seniors and 1% quit, and the rest graduate.

A) if 100% of the students start as a freshman, what percent of freshman graduate in 4 years? In 5 years? What percent quit in 4 years? what percent quit in 5 years?

B) How many years does it take to reach 70% freshmen graduating?   

Answer 1

Note :
When preferred shares are Cummulative,
All preferred Dividends in arrears must be paid before Common shareholders receiving Dividends
Annual Dividends due to Preferred shareholders :
11,000 shares *$ 140 * 1%		$15,400.00
First Year Dividend Distributed		$10,340		Second Year Dividend Distributed	$ 30,460.00		Third Year Dividend Distributed	$ 38,580.00		Fourth Year Dividend Distributed	$ 62,760.00
Number of shares		11000		Number of shares	$ 11,000.00		Number of shares	$ 11,000.00		Number of shares	$ 11,000.00
Per share Preferred Dividend		$      0.94	Per share
To Common shareholders		$       -		First year arrers	$    5,060.00		Third year dividend	$ 15,400.00		Fourth year dividend	$ 15,400.00
(Since Preferred dividend is due)				Second year dividend	$ 15,400.00
					$ 20,460.00		Per share Preferred Dividend	$     1.40	Per share	Per share Preferred Dividend	$     1.40	Per share
Preferred Dividend in arrears		$     5,060.00		Per share Preferred Dividend	$     1.86	Per share
(15400-10340)							To Common shareholders	$     0.63	Per share	To Common shareholders	$     1.28	Per share
				To Common shareholders	$     0.27	Per share	(38580-15400)/37000			62760-15400)/37000
				(30460-20460)/37000
							Preferred Dividend in arrears	$      -		Preferred Dividend in arrears	$      -
				Preferred Dividend in arrears	$      -
	1st Year	2nd Year	3rd year	4th Year
Preferred Stock (Dividend per share)	$    0.94	$              1.86	$     1.40	$                                                    1.40
Common Stock (Dividend per share)	$        -	$             0.27	$    0.63	$                                                    1.28